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NHI Provides Update on July Rents & Senior Housing Occupancy
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Amid the coronavirus outbreak-led market disruptions, National Health Investors, Inc. (NHI - Free Report) , commonly known as NHI, issued a business update related to monthly contractual rent collections and average occupancy from its three largest senior housing operators — Bickford, Senior Living Communities or SLC and Holiday.
Particularly, its rent collections continue to remain strong, with August rent collections coming in at 95.3%. Moreover, the company collected 96.9% and 100% of rent in July and second-quarter 2020, respectively.
August rent deferrals aggregated 4.2%. This includes 2.5% related to the earlier-disclosed deferral given to Bickford.
Notably, NHI’s senior housing business has been adversely impacted by the COVID-19 pandemic. The company is witnessing incidences of COVID-19 outbreaks. In fact, as of Aug 4, it had 450 confirmed active resident cases of coronavirus in its skilled nursing and senior housing portfolio.
This along with probable slower move-ins and high level of move-outs is anticipated to have resulted in occupancy erosion at its senior housing portfolio.
Bickford, which operates 47 properties, reported occupancy of 81.7% in July, declining 80 basis points (bps) from second-quarter 2020. The operator’s same-store portfolio, which includes 42 properties, was 83.5% occupied in July. This indicates a decline of 70 bps from the second-quarter end.
Holiday, operating 26 properties for the company, also witnessed a decline in monthly occupancy. Occupancy as of the July end was 80.7%, falling from 82.3% and 83.5% in June and the second quarter, respectively.
Lastly, SLC, which operates nine properties for NHI, had an occupancy of 79.2% in July, improving 10 bps from the June-end quarter.
Although strong rent collections from senior housing operators are expected to support top-line growth, unfavorable occupancy trends in its senior housing portfolio will likely impact third-quarter earnings.
Apart from the coronavirus outbreak-led occupancy woes, the senior housing market has been reeling with high-supply conditions in certain markets and rising labor costs. This is concerning for NHI because elevated supply usually curtails landlords’ pricing power and limits growth in occupancy level.
Moreover, shares of this Zacks Rank #4 (Sell) company have lost 24.7% over the past year, wider than the industry’s decline of 7.2%.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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NHI Provides Update on July Rents & Senior Housing Occupancy
Amid the coronavirus outbreak-led market disruptions, National Health Investors, Inc. (NHI - Free Report) , commonly known as NHI, issued a business update related to monthly contractual rent collections and average occupancy from its three largest senior housing operators — Bickford, Senior Living Communities or SLC and Holiday.
Particularly, its rent collections continue to remain strong, with August rent collections coming in at 95.3%. Moreover, the company collected 96.9% and 100% of rent in July and second-quarter 2020, respectively.
August rent deferrals aggregated 4.2%. This includes 2.5% related to the earlier-disclosed deferral given to Bickford.
Notably, NHI’s senior housing business has been adversely impacted by the COVID-19 pandemic. The company is witnessing incidences of COVID-19 outbreaks. In fact, as of Aug 4, it had 450 confirmed active resident cases of coronavirus in its skilled nursing and senior housing portfolio.
This along with probable slower move-ins and high level of move-outs is anticipated to have resulted in occupancy erosion at its senior housing portfolio.
Bickford, which operates 47 properties, reported occupancy of 81.7% in July, declining 80 basis points (bps) from second-quarter 2020. The operator’s same-store portfolio, which includes 42 properties, was 83.5% occupied in July. This indicates a decline of 70 bps from the second-quarter end.
Holiday, operating 26 properties for the company, also witnessed a decline in monthly occupancy. Occupancy as of the July end was 80.7%, falling from 82.3% and 83.5% in June and the second quarter, respectively.
Lastly, SLC, which operates nine properties for NHI, had an occupancy of 79.2% in July, improving 10 bps from the June-end quarter.
Although strong rent collections from senior housing operators are expected to support top-line growth, unfavorable occupancy trends in its senior housing portfolio will likely impact third-quarter earnings.
Apart from the coronavirus outbreak-led occupancy woes, the senior housing market has been reeling with high-supply conditions in certain markets and rising labor costs. This is concerning for NHI because elevated supply usually curtails landlords’ pricing power and limits growth in occupancy level.
Moreover, shares of this Zacks Rank #4 (Sell) company have lost 24.7% over the past year, wider than the industry’s decline of 7.2%.
Stocks to Consider
City Office REIT, Inc.’s (CIO - Free Report) FFO per share estimates for the ongoing year have been marginally revised upward to $1.14 over the past week. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Terreno Realty Corporation’s (TRNO - Free Report) FFO per share estimates for 2020 have been revised marginally upward to $1.43 over the past month. It currently carries a Zacks Rank of 2.
Duke Realty Corporation’s Zacks Consensus Estimate for 2020 FFO per share has revised marginally upward to $1.49 over the past week. The company currently carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>